HealthKart Hits ₹1,021 Crore Revenue in FY24, Reports ₹37 Crore Profit

HealthKart, the Gurugram-based health and nutrition giant, achieved a major financial turnaround in FY24, reporting ₹1,021 crore in operational revenue and ₹36.6 crore in profit after tax (PAT). This marks a dramatic recovery from its ₹164 crore loss in FY23. Buoyed by this success, the company raised $153 million in a secondary funding round led by ChrysCapital and Motilal Oswal Alternates, highlighting growing investor confidence.

Revenue Growth Driven by Nutrition Brands

HealthKart saw its revenue grow by 22.6% in FY24, driven by strong demand across its portfolio of nutritional products. Its consolidated total revenue, including non-operating income, reached ₹1,068.9 crore, up from ₹851.8 crore the previous year.

The company owns and manufactures eight prominent health and nutrition brands, including:

• MuscleBlaze
• HKVitals
• TrueBasics
• bGreen
• Gritzo

These brands cater to a diverse customer base, from fitness enthusiasts to children, and have helped HealthKart secure a leading position in India’s health and wellness sector.

Key Revenue Highlights

• Product Sales: Represented 92.6% of total revenue, growing by 22.6% to ₹990.3 crore.
• Service Collections: Increased by 23.9% to ₹30.6 crore.
• Non-Operating Revenue: Skyrocketed 2.4 times, reaching ₹48 crore from ₹19.4 crore in FY23.

Expenses Under Control

While revenue surged, HealthKart managed to keep expenses relatively steady, growing by just 1.5% to ₹1,032.2 crore. The company’s efforts to streamline operations have paid off, allowing it to focus on profitable growth.

Expense Breakdown:

• Cost of Materials: Increased by 14.9% to ₹494.5 crore, remaining the largest single expense.
• Employee Benefits: Grew 11.2% to ₹120.6 crore, including ₹9.4 crore in ESOP costs.
• Advertising: Stayed stable at ₹188.8 crore, underlining the company’s efficient marketing strategy.
• Other Expenses: Added ₹228.3 crore, reflecting general operational costs.

This disciplined cost management contributed to the turnaround, transforming a previous loss into a healthy profit.

Financial Metrics at a Glance

Strategic Growth and Future Challenges

HealthKart has raised approximately $360 million in funding to date from investors including Peak XV Partners, Temasek, and Sofina. The recent $153 million funding round is among the largest for a health-focused startup in 2024, signaling optimism for its growth potential.

The company’s decision to steer clear of multi-level marketing and focus instead on building a direct, trusted relationship with its customers has likely contributed to its high margins and loyal customer base.

However, challenges remain:

• Regulatory Risks: Stricter regulations on product claims could impact growth.
• Market Shifts: Trends in nutrition and wellness are unpredictable, and any decline in consumer interest in supplements could pose a risk.

By emphasizing quality, transparency, and customer trust, HealthKart is well-positioned to counter competition and sustain long-term growth.